Robinhood and Coinbase's Q4 shows retail's significant interest in alternative cryptos
Quick Take
- While Robinhood delivered an impressive quarter for crypto volumes ($71 billion), Coinbase retains the top position with $440 billion in volume.
- The following is an excerpt from The Block’s Data and Insights newsletter.
Robinhood's crypto revenue surprised many with a super impressive fourth quarter in 2024, reaching $360 million, nearly a 490% increase from the third quarter's $61 million. This marks the platform's highest crypto revenue quarter, substantially exceeding its previous peak of $126 million in the first quarter of 2024.
Crypto revenue now represents nearly 40% of Robinhood's total quarterly revenue, compared to about 20% in Q3 2024.
The revenue growth coincides with expanded cryptocurrency offerings on the platform. Robinhood's crypto portfolio has grown to include popular memecoins like BONK, WIF and TRUMP, alongside traditional cryptocurrencies. The platform generates revenue primarily through trading spreads rather than commission fees, similar to other retail-focused exchanges.
While Robinhood did not include specific breakdowns of what tokens were traded, Coinbase reported earnings shortly after and did include some insights. Coinbase's fourth-quarter report indicates Bitcoin comprised 27% of trading volume, followed by Ethereum at 10%, USDT at 15%, with other crypto assets accounting for 48%.
This distribution suggests retail traders are showing significant interest in alternative cryptocurrencies beyond major assets. While Robinhood delivered an impressive quarter for crypto volumes, Coinbase retains the top position with $440 billion in volume traded compared to Robinhoods $71 billion. However, the competition between the two platforms appears to be much closer than many had anticipated. These stats help understand retail mindshare and where their attention is focused.
Platforms like Robinhood have been a staple in measuring retail participation within crypto markets. While memecoin listings appear to drive short-term user engagement and speculation, their typically volatile nature typically impacts long-term trading volumes. The next quarter's performance will be crucial in determining whether this uptick represents a temporary surge driven by a speculative interest or a longer-term shift in retail investor preferences.
This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.
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